The seed you plant today will provide comfort, nourishment, and shelter for future generations.
GIFT PURPOSES AND DESIGNATIONS
“Our Diocese benefits by having strong parishes, schools, and neighborhoods with the resources they need to be successful” —Mr. Ashley Linville, Director of Development
The Office of Stewardship and Development seeks to encourage planned gifts to benefit a wide variety of areas within the Faith, and partners with donors on all areas they support. The Office values the interests and needs of donors, and strives to make sure that the process to structure gifts is collaborative.
Gifts may be arranged to benefit the Diocese, the Parish, the School, or Catholic Charities. Some donors wish to combine more than one area based on their own specific interests and experiences. The Office is also delighted to reach out to other fundraising colleagues within the Catholic community to include them in the conversation regarding the gift. To ensure that the intentions of donors are met, gift designations are included in the signed gift agreement – typically the membership form that is completed to join the Legacy Society.
Gift purposes are usually either for annual operations, capital needs, or endowment. Operations refers to ongoing annual project and program expenses, with the donations fully spent in that same fiscal year. Capital needs include one-time expenditures that can be depreciated. Endowment gifts create funds that are invested with only a small percentage utilized each year so that the funds grow in perpetuity.
Gift designations may be made without any restrictions (unrestricted). Donations marked “Unrestricted”, or those that do not list any restrictions, give the Church the greatest flexibility on how to use the gift. Unrestricted donations may be reviewed by a gift acceptance committee and/or the Bishop within the Diocese to determine the allocation purpose.
Some may wish to express additional preferences regarding the use of their gift. For example, some donors name a specific parish or school, or a particular project or program within annual operations as the recipient. Capital donations may be restricted to a unique physical space or bricks and mortar project. Endowment gifts may be used for new funds with guidelines on who qualifies. (Please see the next sections on naming opportunities and understanding endowments)
SPECIFIC GIFT ASSOCIATED WITH GIVING LEVELS AND NAMING OPPORTUNITIES
As mentioned in the previous section, donors can become eligible to name physical spaces or to name individual programs or endowments. Based on the gift size itself, these opportunities are offered in recognition of the generous funding provided. Individual levels below are the minimum gift requested for each naming opportunity.
Diocesan naming opportunities and minimum gifts requested to name the fund or location:
Vocations Ministry Seminarian – $1,500,000 for one priest endowment to generate $75k/year
Student Scholarships – $50,000 for one student endowment to generate $2,500/year
Programmatic endowment $100,000 for one named program endowment to generate $5k/year
Parish Expansion – $250,000 for one named endowment to generate $12,500/year for capital
Gift minimums to the Diocese:
Donor Advised Fund: $1,000 to set up account, no minimum distribution amount required
Charitable Remainder Trusts: $100,000 to establish
Charitable Lead Trusts: $500,000 to establish
Charitable Gift Annuity: $25,000 to establish
Bequests, Life Insurance, Appreciated Stock, Required Minimum Distributions: Any amount
Please note that minimum gift levels may change over time. Every effort will be made to match the current naming opportunities in light of Legacy gifts to be received in the future. The named physical space and/or creation of an endowment typically occurs when the cash gift or asset is received. Announcements of gifts will be made during the lifetime of the donors, and these donors will be included in recognition events for their generous support.
Endowments are one of the ways for donors to leave a permanent legacy. Donors who have someone special to honor often set up endowments bearing that individual’s name. Donors who seek to fund programs that stand the test of time find endowments to be appealing. Endowments create budget line items that are intended to exist forever.
Endowments last for a long time because only a small percentage (~5%) of the market value is spent annually for the purpose specified. Endowments are invested and managed in conjunction with external standards (UPMIFA) and internal controls established by the non-profit organization itself. The annual percentage payout rate (~5%) is typically set separately by an investment committee of an organization and cannot be changed without approval by that committee.
The philosophy behind endowments is to create a dedicated revenue source that benefits a staff member, student, program, or ongoing maintenance needs. The selection of an endowed fund recipient by the organization is often used to recruit, retain or reward those who have distinguished themselves in their service.
Click here for examples of how endowments are having an impact at the Diocese
If you have questions or would like more information about the Planned Giving, contact,
Ashley Linville, Director of Stewardship and Development
at 615.383.6393 or firstname.lastname@example.org.